2015 RESULTS 15 MARCH 2016

Transcription

1 2015 RESULTS 15 MARCH 2016

2 STEFAN BOMHARD GROUP CHIEF EXECUTIVE

3 2015 HIGHLIGHTS Robust revenue, profit, margin growth and cash conversion Executive team strengthened by appointments and promotions Further dividend growth and a 100m share buyback Positive local drivers in Singapore, Hong Kong and Emerging Markets New strategic objectives established 3

4 ROBUST 2015 PERFORMANCE REVENUE +7.8% CCR +2.0% ACR OPERATING PROFIT +10.3% CCR +7.8% ACR OPERATING CASH CONVERSION OF 101% 182.5m CASH RETURNED TO SHAREHOLDERS UNDERPINNED BY OUR STRONG BALANCE SHEET Note: All numbers and growth rates pre exceptional items and property profits 4

5 BALANCED SET OF INCOME SOURCES TRADING PROFIT CONTRIBUTION BY REGION UK 18% Europe 5% Emerging Markets 14% South Asia 15% North Asia 23% Australasia 25% Note: 2015 trading profit contribution %, pre exceptional items and at constant currency 5

6 STRENGTH ACROSS PORTFOLIO 2015 TRADING PROFIT GROWTH % % % +13.1% +18.3% % -2.8% -5 Europe UK North Asia Australasia Emerging Markets South Asia GROUP OPERATING PROFIT +10.3% Note: Growth rates pre exceptional items and property profits, at constant currency 6

7 CONSISTENCY OF PERFORMANCE REVENUE OPERATING PROFIT* ADJUSTED EPS** DIVIDEND PER SHARE 20.9p 20.1p 17.4p 14.5p 11.0p 52.1p 50.2p 43.5p 39.1p 35.5p 324.7m 301.1m 280.7m 259.8m 244.4m 6,836m 6,703m 6,525m 6,085m 5,826m Note: * pre exceptional items and property profits of 17.3m in 2014 and 6.2m in 2013 ** pre exceptional items 7

8 CHRISTOPHER DAVIES GROUP FINANCIAL CONTROLLER

9 SUMMARY PROFIT & LOSS ACCOUNT 2015 M 2014 M CHANGE ACR CHANGE CCR Sales 6, , % 7.8% Operating profit % 1.6% Underlying operating profit* % 10.3% Underlying profit before tax* % 10.5% Tax rate (%)** Basic adjusted EPS (p) % 5.2% * Pre exceptional items and property profit of 17.3m in 2014 ** Effective tax rate 9

10 GROSS MARGIN AND OVERHEAD ANALYSIS GM 14.5% +20 BPS YoY Market portfolio mix effect Growth in high margin Aftersales OVERHEADS 9.7% OF SALES, FLAT YoY* Fixed cost leverage Higher IT amortisation *Note: 2014 included a property disposal profit of 17.3m. YoY change excludes this from the prior year base 10

11 POSITIVE GROUP MIX EFFECT REGIONAL TRADING MARGIN Australasia 7.4% +20 BPS GROUP +20 BPS North Asia 10.7% -40 BPS UK 2.3% -30 BPS South Asia* 10.4% +100 BPS Emerging Markets 4.6% +130 BPS Europe 3.3% - * South Asia 2014 trading margin excludes property disposal profit 11

12 GROUP TRADING PROFIT Reported Growth +2.9% Underlying Growth +8.4% (17.3) (2.9) (1.8) m reported Property profit 2014 underlying Europe UK Australasia Emerging Markets South Asia North Asia 2015 reported Note: All numbers at actual exchange rates 12

13 NET FINANCE COSTS 2015 M 2014 M Bank and loan interest Stock holding interest (18.4) (18.6) Interest on private placement notes (3.1) (2.9) Pension interest net & other Interest excluding mark to market (14.2) (14.8) Mark to market gain Total net finance costs (13.3) (13.3) Note: All numbers at actual exchange rates 13

14 IMPACT OF CURRENCY REVENUE -5.8% OPERATING PROFIT* -2.5% *Note: 2014 included a property disposal profit of 17.3m. YoY change excludes this from the prior year base. % s are differences between ACR and CCR on slide 4 14

15 CASH FLOW OPERATING CASH FLOW 2015 M 2014 M FREE CASH FLOW 2015 M 2014 M NET CASH 2015 M 2014 M Operating profit Operating cash flow Free cash flow Depreciation / amortisation Net interest (17.4) (17.8) Transactions in own shares (net) (110.3) (97.8) Working capital (32.8) 66.5 Taxation (69.6) (52.5) Acquisitions & disposals Pension 2.7 (1.0) Non controlling interest (10.2) (9.8) Equity dividends (91.1) (81.5) Other (14.7) (22.5) Net capex (53.6) (35.0) Other cash flows Net cash flow (23.5) Opening net cash Movement in fair value Impact of FX movements (21.2) (41.3) Operating cash flow Free cash flow Closing net cash * * Includes fair value re-measurements & currency translation All numbers at actual exchange rates 15

16 GUIDANCE FULL YEAR 2016 Tax rate 24-25% Interest cost c 15m (excl. mark to market) Capital expenditure 85m Net cash 170m 16

17 BUSINESS UPDATE

18 AUSTRALASIA STRONG 2015 PERFORMANCE OUTPERFORMING WITH SUBARU Subaru Volume +7.6% Market +3.8% NON-MINING STATES DRIVING GROWTH New South Wales +6.9% Queensland +5.4% Victoria +4.2% Western Australia -7.9% PREMIUMISATION OF DEMAND Premium Brands growing faster than the market 18

19 SUBARU AUSTRALIA BRAND GROWTH STRATEGY Adding a local layer to our partner s global marketing to drive brand share 19

20 NORTH ASIA MARKET LEADERSHIP STRENGTHENED Multi-year diesel commercial vehicle (DCV) replacement scheme drove New volume growth GROWTH ACROSS VALUE DRIVERS Good gross profit growth in New, Service & Parts MARKET SHARE +280 BPS MARKET GROWTH MODERATED IN H % +1.1% +11.6% H1 H2 FY 20

21 UK INCHCAPE S BRANDS TAKING SHARE UK LFL Revenue +9.5% Used vehicle margin pressure limited leverage New vehicle growth feeding Aftersales LOUIS FALLENSTEIN APPOINTED UK CEO OCTOBER

22 SOUTH ASIA MARKET REBOUNDING CAR PARC AGE PROFILE (k units) IMPROVED H PERFORMANCE % < 7 years > 7 years 55% AGED > 7 YEARS +3.0% H1 Trading Profit H2 Trading Profit Note: All numbers and growth rates pre exceptional items and property profits 22

23 EMERGING MARKETS STRENGTH FROM OUR DIVERSIFICATION NEW DIRE DAWA Sales and Aftersales facility in Ethiopia supporting growth RESILIENT PERFORMANCE IN RUSSIA Defensive Aftersales Improved vehicle margins STRONG PROFIT GROWTH In Poland, Romania and Bulgaria 23

24 EUROPE RESILIENT PERFORMANCE Market share leader in Greece: 12.3% (+30 BPS) Belgian market growth driven by the fleet segment Strong performance in Finland ARIS ARAVANIS APPOINTED CEO CONTINENTAL EUROPE 24

25 Robust 2015 revenue and profit growth Strength from our diversified portfolio of markets Strong cash generation, 182.5m returned to shareholders New strategic objectives established 25

26 LOOKING AHEAD

27 2016 OUTLOOK Attractive local level drivers across our revenue streams and some of our markets Growth in Aftersales: Expansion in 1-5 year Car Parc across the majority of our markets New strategic focus to capture the opportunities for our Group and build on our strong fundamentals SOLID CONSTANT CURRENCY PERFORMANCE EXPECTED IN 2016 YEN : AUS $ will act as a transactional FX headwind 27